D080 Managing in a Global Business Environment - Set 1 - Part 1

Correct Answer: Geocentric

The geocentric approach allows for a more fluid movement of employees across borders and promotes diversity as assignment decisions are made jointly by headquarters and field offices.

Correct Answer: Globalization

Globalization involves the increasing interconnectedness of economies, cultures, and societies across the globe, leading to a more integrated world market.

Correct Answer: Trade

Trade is the fundamental economic concept involving the buying and selling of goods and services.

Correct Answer: Capital

Correct Answer: Outsourcing

Outsourcing involves contracting with third-party companies, often located in foreign countries, to supply goods or services.

Correct Answer: Nongovernmental organizations (NGOs)

NGOs operate independently of governments and are focused on addressing humanitarian and social issues.

Correct Answer: Economic

Economic globalization refers to the global integration of markets, trade, and finance, enabling the movement of goods, capital, and services across borders.

Correct Answer: Patents

Patents grant exclusive rights to inventors to protect their inventions from being used or sold by others for a specific period.

Correct Answer: Copyright

Copyright protects original works of authorship, such as literary, musical, and artistic works, giving the creator exclusive rights over the use and distribution of their work.

Correct Answer: Trademark

A trademark protects the branding and identity of a product or service, ensuring that others cannot use similar marks that could cause consumer confusion.

Correct Answer: Asset

Assets are resources owned by a company that are expected to bring future economic benefits, such as property, equipment, and cash.

Correct Answer: Liability

A liability is something a company owes, typically money, such as loans, accounts payable, or mortgages.

Correct Answer: Financial instrument

Financial instruments are contracts that create financial assets for one party and liabilities or equity for another.

Correct Answer: Multinational firm

Multinational firms operate in multiple countries, producing or selling goods and services across borders.

Correct Answer: Market entry

Market entry is the initial stage of global expansion where businesses start selling their products or services in new foreign markets.

Correct Answer: Economies of scale

Economies of scale occur when businesses reduce their per-unit costs by increasing their overall production volume.

Correct Answer: Economies of scope

Economies of scope occur when businesses can reduce costs by offering a broader range of products, utilizing shared resources.

Correct Answer: Cost

The cost driver of globalization includes efforts to reduce production costs, often through achieving economies of scale and scope.

Correct Answer: Infrastructure

Poor infrastructure, such as badly maintained roads, can be a major challenge for businesses, affecting logistics and the supply chain.

Correct Answer: Six Sigma

Six Sigma is a data-driven approach used to eliminate defects and improve quality by reducing process variability.